AI, AI and some more AI is the future of supply chain management
From improving productivity and predictability ten times, automating issue identification and resolution, fostering generative AI powered conversations to reducing costs and boosting CX, AI will become the very core of autonomous supply chains and unified fulfillment experiences. Here are my seven amazing supply chain trends that will rapidly emerge in 2024 and beyond, affirms Soham Chokshi, CEO & Co-Founder, Shipsy, in this OpEd contribution to www.LogisticsGulf.com
#1: AI will drive 10 times logistics productivity
AI-powered agents and co-pilots will be more capable of identifying issues, recommending accurate solutions, and even escalating issues if needed, empowering businesses to achieve ten times productivity.
Logistics leaders will be able to set KPIs for such agents, and it will be possible to clearly outline things like where these agents will receive data from, what critical areas they will monitor, the actions they should take, and finally, how they create and deliver reports based on their analysis.
13.8% more customer inquiries per hour can be handled by support agents who use AI—Nielsen Norman Group.
#2: Chat will be the future of enterprise software
Integrating AI into software and applications across finance, supply chain, and customer service sectors will enable businesses to interact with systems through chat interfaces. This integration will provide access to highly accurate responses, derived from real-time signals such as location data, inventory data, carbon emissions tracking data, ETAs, rider data, customer feedback, and so on.
23% of customer service companies are currently using AI chatbots—Salesforce.
#3: AI will ensure 10X predictability
AI will make supply chains proactive. For example, consider a driver enroute for a delivery. The system analyzes all the real-time data of the journey, such as speed, traffic conditions, and stops along the way.
It then determines that a particular pickup scheduled for 6 pm will not be done. Hence, the system dynamically reallocates the order to a rider who can do that pickup on time. This approach will enable businesses to predict 10 times more accurately.
61% of manufacturing executives report decreased costs owing to AI-powered supply chain–McKinsey.
#4: Logistics Planning will become more dynamic & scientific
Logistics planning is time-intensive and dynamic. Therefore, employing techniques such as dynamic network planning, dynamic hub operations planning, dynamic line haul planning, and dynamic workforce planning, among others, saves significant time and costs by thousands of dollars.
For instance, through dynamic hub operations, businesses can automatically generate mid-mile trips, tailor trips according to stops and consignment destinations, and monitor all line-haul movements on a single dashboard.
45 % businesses are employing AI-powered demand forecasting, and 43 % aim to do so over the next two years—Gartner.
#5: Unified fulfillment will be the future of CX
Manufacturers, retailers and logistics providers are increasingly seeking a completely integrated fulfillment experience. Hence, a unified warehouse (WMS) and transportation management system (TMS) will be the future. It’ll drive cost efficiency by eliminating the need to invest in integration resources and data management.
Businesses will have access to a single source of truth to gain real-time knowledge on warehousing, transportation and order fulfillment. Dispatch times can be drastically reduced by eliminating double sortations.
53% of manufacturers report increased revenues as a direct result of introducing AI in the supply chain–McKinsey.
#6: Enterprise UI (user interface) & UX (user experience) will undergo complete change
Today, individual users in enterprises are exposed to fantastic applications that help them reduce costs and make optimal buying decisions based on choices. For instance, a travel app highlights the best flight options based on customer preferences.
Imagine having a similar experience while selecting a logistics service provider (LSP)! It’s already happening. AI-powered multi-carrier management auto selects the appropriate LSP based on objectives like cost reduction, same/next-day delivery, geographical expertise and more.
71% millennials in enterprise settings are unhappy with their collaboration tools—UpTop Report.
#7: Greater Usage of Public Digital Infrastructure
Governments across the globe are focusing on strengthening the supply chain’s digital infrastructure. Businesses will rapidly see themselves leveraging this technology infrastructure to drive logistics efficiencies and process optimization.
For instance, integrating location data received digitally from customers with national address databases will drastically enhance location accuracy resulting in greater delivery success and optimized costs.
These are exciting times for the global supply chain industry. With AI becoming mainstream, businesses have a massive opportunity to break traditional practices and become more competitive, profitable, resilient, and customer centric.
